Funding Outlook: Entering the Second Half
By Alexander Ruf, Head of Funding and Investor Relations, starting 17th of August.
If funding plans were football matches, NIB would head into the half-time break in a comfortable position. With EUR 6 billion raised during the first half of 2026, around 65% of the year’s EUR 9–9.5 billion funding plan is already complete. But as every fan knows in a World Cup year, no match is won at half-time.
NIB is not alone in crossing the halfway mark. Across the broader SSA (sovereign, supranational and agency) market, funding programmes are around two-thirds complete after a record first half for issuance volumes. The combination of high supply and strong investor demand has been one of the defining themes of 2026 so far.
The second half is shaping up to be busy. NIB plans to return to the US dollar benchmark market with a shorter-dated benchmark transaction, potentially in the three-year maturity area. We are also exploring opportunities in less mature markets, including syndicated Hong Kong dollar issuances, while continuing to serve investors in Nordic currencies where our lending activity remains strong.
And although Helsinki is a long way from Sydney and Auckland, we see scope for further activity in the Kangaroo and Kauri markets, where NIB has built strong investor relationships over many years.
Private placements will remain an important part of the funding toolkit, offering tailor-made solutions for investors with specific requirements. Roadshows resume in September, and we look forward to reconnecting with investors across markets.
September will also be a special month for another reason. NIB celebrates its 50th anniversary of operations at Helsinki’s iconic Finlandia Hall, providing an opportunity to reflect on five decades of funding activity and investor partnerships.
Looking back at the Bank’s first steps in the capital markets, the Bank’s inaugural bond, issued in 1977, was a USD 40 million transaction with a 7.75% coupon and a seven-year maturity.
A further milestone came in 2002, when NIB launched its first SEC-registered global USD benchmark bond, a transaction that, according to the Bank’s Annual Report, “allowed investors to diversify their existing portfolios of liquid bonds with a high credit rating”. More than two decades later, that observation has lost none of its relevance.
From a single USD 40 million bond in 1977 to a multicurrency funding programme raising around EUR 9 billion annually, NIB’s funding journey mirrors the growth of both the Bank and the investor relationships that underpin its market access today.
A strong first half across markets
The first six months of 2026 saw NIB tick many of the key boxes in its funding plan: a USD 1 billion 2031 benchmark; a GBP 500 million three-year transaction; and an AUD 600 million five-year issue and a CHF 175 million bond with a 10-year that offered a welcome opportunity to extend duration. A particular milestone was the Bank’s largest-ever Environmental Bond, a EUR 1 billion seven-year benchmark issued in May.
Demand for the Nordic currencies remained robust. NIB issued DKK 3.25 billion, while Swedish investor demand continued to be strong, with SEK 6 billion printed across conventional, NEB and SLLB formats.
In Iceland, NIB returned with its second green ISK transaction, issuing ISK 6 billion and remaining the only foreign borrower active in the market – a continuing contribution to the development of the Icelandic capital market through triple-A rated securities in local currency.
Private placements delivered another strong performance. While 2025 ended with significant demand for callable structures, interest in 2026 shifted towards Hong Kong dollar bonds: NIB issued the equivalent of approximately EUR 800 million in HKD, a record annual volume for the currency.
All this was achieved against continued market volatility. Identifying and using issuance windows remained critical for issuers, while investors once again showed an impressive ability to absorb supply and stay engaged. Secondary performance reflected the supportive conditions: NIB’s January 2031 USD benchmark tightened modestly from issuance despite the March risk-off episode, and the EUR seven-year Nordic Environmental Bond has traded in a remarkably tight range since launch – evidence of the depth of demand for high-quality green SSA paper.
A new chapter for Funding & Investor Relations
As NIB prepares to celebrate its 50th anniversary, the Funding & Investor Relations team is entering a new chapter of its own. After 23 years in the NIB funding team, Jens Hellerup is passing the captain’s armband to Alexander Ruf as he moves into his new role as Treasurer.
Jens commented:
“It is both natural – and with a bit of heartbreak – that after 23 years with the NIB funding team I now hand over the direct responsibility for managing the Bank’s funding to a successor. I am fully confident that the excellent collaboration with our investors and counterparties will continue under Alexander’s leadership and together with the funding team.”
Looking ahead to his new role, Alexander commented:
“I have had the opportunity to work closely with many of NIB’s investors and counterparties over the years and look forward to continuing those relationships in my new role. Together with the funding team, we will continue to focus on maintaining a diversified funding programme and staying close to our investors across markets.”
To finish with the football analogy one last time, the first half may have produced a healthy lead for the NIB team. The challenge now is to stay focused, execute well, and finish the match just as strongly.